When it comes to finding stocks that are more likely to go up than down, nobody has a crystal ball. What we do have, however, is evidence that we can weigh, compare and, if necessary, massage — but only a little. I liken chart analysis to a judging a civil trial in the courts. We look for a preponderance of evidence to make our judgment to buy, sell or hold, and right now I see a good case to buy Tesaro (NASDAQ: TSRO).  Tesaro is an oncology-focused biopharmaceutical company, and that is its first bit of evidence. Biotech… Read More

When it comes to finding stocks that are more likely to go up than down, nobody has a crystal ball. What we do have, however, is evidence that we can weigh, compare and, if necessary, massage — but only a little. I liken chart analysis to a judging a civil trial in the courts. We look for a preponderance of evidence to make our judgment to buy, sell or hold, and right now I see a good case to buy Tesaro (NASDAQ: TSRO).  Tesaro is an oncology-focused biopharmaceutical company, and that is its first bit of evidence. Biotech as a sector is beating the market and in fairly good shape. A strong sector is a big part of a stock’s strength, so this goes in the plus column.  The next is the big picture. Since peaking in June of last year, roughly a year after it began trading as a public company, the stock eased lower for many months. Weekly charts show a clear declining trendline from that time and a somewhat less clear parallel channel guiding it lower.  This is not a positive on its own, but it does leave us with a good trigger for the… Read More

The Affordable Care Act, also known as Obamacare, has been in the news a lot lately thanks to the insulting utterances of its “architect,” MIT economist Jonathan Gruber.  Yet the controversy over Gruber’s comments surrounding the “stupidity of the American voter” aside, the fact is that just about everybody needs health care and health care insurance, in one form or another. It’s this understanding that has likely led investors to buy into this defensive sector.  This year, health care has been one of the market’s best-performing sectors, up nearly 25% in 2014, compared with 12% for the S&P 500. And… Read More

The Affordable Care Act, also known as Obamacare, has been in the news a lot lately thanks to the insulting utterances of its “architect,” MIT economist Jonathan Gruber.  Yet the controversy over Gruber’s comments surrounding the “stupidity of the American voter” aside, the fact is that just about everybody needs health care and health care insurance, in one form or another. It’s this understanding that has likely led investors to buy into this defensive sector.  This year, health care has been one of the market’s best-performing sectors, up nearly 25% in 2014, compared with 12% for the S&P 500. And one of the best-performing stocks in the health care sector is health insurance provider Centene Corp. (NYSE: CNC). #-ad_banner-#Centene provides programs and services related to the so-called “underinsured” via Medicaid and Medicaid-related health coverage. Government subsidies associated with the Affordable Care Act have helped this segment of CNC’s business blossom.  In late October, Centene reported better-than-expected Q3 revenue and profit that was primarily fueled by growth in Medicaid members. The company said its total membership count rose 42% year over year in the quarter to 3.7 million as of Sept. 30. Nearly 70% of that was Medicaid members. Read More

As an American living in Colombia, I have seen firsthand how watching the U.S.-based news feed can skew investor perspectives and limit opportunities. Sometimes looking beyond the popular press to the real facts behind the story can lead to some great investments. For example: Ask about investing in Colombia and most investors would wonder if you’ve gone mad with visions of drug lords and rebel groups coming to mind. Why? Because these dramatic problems are all that plays on the 24-hour news feed. I know I have earned consistent double-digit returns on my investments in Colombia. But to overcome my… Read More

As an American living in Colombia, I have seen firsthand how watching the U.S.-based news feed can skew investor perspectives and limit opportunities. Sometimes looking beyond the popular press to the real facts behind the story can lead to some great investments. For example: Ask about investing in Colombia and most investors would wonder if you’ve gone mad with visions of drug lords and rebel groups coming to mind. Why? Because these dramatic problems are all that plays on the 24-hour news feed. I know I have earned consistent double-digit returns on my investments in Colombia. But to overcome my limited and media-driven understanding of the opportunities, I had to dig deeper and look at the facts. And that is exactly the case with another investment opportunity I have been watching. If you are following the U.S.-based news feed, all you see about this country recently is its interference in a neighbor’s conflict and the power-hungry ambitions of its president.  Look beyond the superficial sound bites and you see record low stock valuations and annualized investment returns of 45% and higher. #-ad_banner-#How Do You Say ‘Record Low’ in Russian? Prices for stocks on the Moscow Interbank Currency Exchange (MICEX) have… Read More

Investing in semiconductor stocks is always tricky. Industry cycles can lead to bumps in the road for the bigger players and massive potholes for the smaller ones. And one niche chip stock looks especially vulnerable to potholes right now. At first blush, Cypress Semiconductor Corp. (NYSE: CY) is the picture of health. The company appears to have solid momentum as its parlays its strength as a niche chipmaker into higher profits. #-ad_banner-#Cypress’ Programmable Systems Division, for example, is a world leader in high-performance programmable systems-on-a-chip (PSoC), which have applications in consumer electronics, communications, automotive, medicine, industrial and other sectors. As… Read More

Investing in semiconductor stocks is always tricky. Industry cycles can lead to bumps in the road for the bigger players and massive potholes for the smaller ones. And one niche chip stock looks especially vulnerable to potholes right now. At first blush, Cypress Semiconductor Corp. (NYSE: CY) is the picture of health. The company appears to have solid momentum as its parlays its strength as a niche chipmaker into higher profits. #-ad_banner-#Cypress’ Programmable Systems Division, for example, is a world leader in high-performance programmable systems-on-a-chip (PSoC), which have applications in consumer electronics, communications, automotive, medicine, industrial and other sectors. As its name suggests, PSoC incorporates computing, communicating and dozens of other functions all on one chip. That’s a big advantage for electronics manufacturers because it reduces design time, power consumption, space usage and, ultimately, production costs. It also enables these customers to make smaller, more sophisticated devices with more operating features and longer battery life. Cypress’ Programmable Systems division also makes touchscreens and other crucial PSoC interfaces. The other main segment, Memory Products, is a top producer of several forms of random access memory for use in consumer electronics, telecom equipment, wireless infrastructure and military avionics, among other areas. There’s… Read More

I recently finished a brand new report called “The 10 Stocks To Own For The Rest Of Your Life.” The title is pretty self-explanatory — I compiled a group of stocks so strong and dependable that I think you could buy them now and profit from them forever. #-ad_banner-#Unsurprisingly, they have a remarkable track record. These 10 stocks gained an average of 829% over the past decade, beating the S&P 500 by 700 percentage points. That’s equivalent to an average return of 25% a year. To find these “Forever Stocks,” I searched for companies with three key traits that many… Read More

I recently finished a brand new report called “The 10 Stocks To Own For The Rest Of Your Life.” The title is pretty self-explanatory — I compiled a group of stocks so strong and dependable that I think you could buy them now and profit from them forever. #-ad_banner-#Unsurprisingly, they have a remarkable track record. These 10 stocks gained an average of 829% over the past decade, beating the S&P 500 by 700 percentage points. That’s equivalent to an average return of 25% a year. To find these “Forever Stocks,” I searched for companies with three key traits that many of the market’s strongest performers share. I started by honing in on companies that possess what I like to call “Irreplaceable Assets.” If you’ve ever been to Boulder Canyon in Nevada, you may have seen firsthand how Irreplaceable Assets can create wealth for the long haul. The harsh canyon in the heart of the desert holds one of the greatest investments in U.S. history: the Hoover Dam. The Hoover Dam is a profit machine. Finished in 1936 at a cost of $49 million, the dam today generates and sells about $63 million in electricity every year — nearly 130% of… Read More

Michael Corbat has circled Jan. 5, 2015, on his calendar. That’s when his administrative staff at Citigroup (NYSE: C) will turn in reams of paperwork for the Federal Reserve’s Comprehensive Capital Analysis and Review (CCAR). And when regulators get back to Corbat in subsequent weeks, he may finally be able to breathe a big sigh of relief.  Citigroup has tried — and failed — to get the green light before, which has prevented the bank from pursuing a massive stock buyback and dividend hike. Not only would a clean bill of health in the CCAR pave the way for a… Read More

Michael Corbat has circled Jan. 5, 2015, on his calendar. That’s when his administrative staff at Citigroup (NYSE: C) will turn in reams of paperwork for the Federal Reserve’s Comprehensive Capital Analysis and Review (CCAR). And when regulators get back to Corbat in subsequent weeks, he may finally be able to breathe a big sigh of relief.  Citigroup has tried — and failed — to get the green light before, which has prevented the bank from pursuing a massive stock buyback and dividend hike. Not only would a clean bill of health in the CCAR pave the way for a string of such shareholder perks, but the stock should make a rapid beeline up to book value, implying 25%-30% upside from current levels.  Further, the longer-term potential upside is significantly higher thanks to strong positioning vis-a-vis interest rates and the U.S. housing market. #-ad_banner-#The previous rejection of the bank’s dividend and stock buyback plans was a serious black eye, as it suggested Citi had failed to clean up its act more than five years after the financial crisis began.  Regulators expressed concern that Citigroup’s business model was too unwieldy and not yet capable of weathering another deep financial crisis. They… Read More

Baron Rothschild’s advice to, “Buy when there’s blood in the streets,” is not thought to be a literal recommendation. The idea is that overwhelming fear drives rational investors to irrationally sell good stocks, which can be picked up for huge discounts while emotions dominate sentiment. Sometimes, unfortunately, battles over territory lead to actual bloodshed, as we’ve been witnessing in Eastern Europe. #-ad_banner-#The ongoing conflict between Russia and Ukraine has continued for longer than almost anyone predicted and still shows no sign of easing. Investors have responded by dumping Russian stocks. The Market Vectors Russia ETF (NYSE: RSX) has slid nearly… Read More

Baron Rothschild’s advice to, “Buy when there’s blood in the streets,” is not thought to be a literal recommendation. The idea is that overwhelming fear drives rational investors to irrationally sell good stocks, which can be picked up for huge discounts while emotions dominate sentiment. Sometimes, unfortunately, battles over territory lead to actual bloodshed, as we’ve been witnessing in Eastern Europe. #-ad_banner-#The ongoing conflict between Russia and Ukraine has continued for longer than almost anyone predicted and still shows no sign of easing. Investors have responded by dumping Russian stocks. The Market Vectors Russia ETF (NYSE: RSX) has slid nearly 30% this year, matching the steady slide of the Russian ruble.  Concerns of an expanded conflict, coupled with a rapidly-slowing Russian economy, means that the Moscow Interbank Currency Exchange (MICEX) now trades for less than five times trailing earnings. The index is trading at its steepest discount to emerging market equities since at least 2005. Rational investors may want to heed Baron Rothschild’s advice and look beyond short-term fears. Indeed behind the grim news are some real positives: Russia recently signed two huge trade deals with China that go a long way to blunt economic sanctions from the West. China… Read More

The broader market’s powerful “V” recovery off its mid-October lows recouped all of last month’s losses and then some, with the S&P 500 hitting new all-time highs this week. But not all sectors have kept pace, and it is in these underperforming areas where traders should look for rebound candidates that have the biggest upside potential left. Casino stocks are well off their yearly highs, made in early 2014. Investors jumped shipped as Chinese gaming revenue slowed thanks to Beijing’s anti-corruption crackdown. But I think the China fears have been greatly exaggerated, and I’m willing to bet on the house… Read More

The broader market’s powerful “V” recovery off its mid-October lows recouped all of last month’s losses and then some, with the S&P 500 hitting new all-time highs this week. But not all sectors have kept pace, and it is in these underperforming areas where traders should look for rebound candidates that have the biggest upside potential left. Casino stocks are well off their yearly highs, made in early 2014. Investors jumped shipped as Chinese gaming revenue slowed thanks to Beijing’s anti-corruption crackdown. But I think the China fears have been greatly exaggerated, and I’m willing to bet on the house at these depressed levels. Specifically, I like the risk/reward on Las Vegas Sands (NYSE: LVS). It trades with a current P/E ratio of 19, which is in line with the S&P 500 and below its peers. Plus, its 3.2% dividend yield should help put a floor under the shares. On the charts, there was a bullish divergence early this month with a new price low under $58 but no new highs in volatility. This likely signals a bottom. In addition, the sideways action between $58 and $65 over the past two and a half months appears to be forming a… Read More

Here at StreetAuthority, we’re big fans of Real Estate Investment Trusts (REITs).  They provide solid income backed by real assets that people will always need. #-ad_banner-#And one of our favorite REITs has long been known for great dividend yields and a very stable tenant. Better still, management at this REIT has put the wheels in motion to deliver an even higher payout in coming years. I’m talking about Government Properties Income Trust (NYSE: GOV), which is one of the largest publicly-traded landlords for the U.S. government.  Of the REIT’s 82 properties, 32 are leased to the Federal government, 18 to… Read More

Here at StreetAuthority, we’re big fans of Real Estate Investment Trusts (REITs).  They provide solid income backed by real assets that people will always need. #-ad_banner-#And one of our favorite REITs has long been known for great dividend yields and a very stable tenant. Better still, management at this REIT has put the wheels in motion to deliver an even higher payout in coming years. I’m talking about Government Properties Income Trust (NYSE: GOV), which is one of the largest publicly-traded landlords for the U.S. government.  Of the REIT’s 82 properties, 32 are leased to the Federal government, 18 to state and local branches and one to the United Nations. Almost all (93%) of the REIT’s revenue is tied to the public sector, and Government Properties sports a vacancy rate of just 4.6%, well under the 14.8% vacancy for office buildings nationally. That kind of stability has helped generate  a compound annual revenue growth of 21%  since 2007. I first looked at GOV in February 2013, which was a great time to enter the stock. Although shares subsequently rallied following my article, they’ve recently pulled back and again hold clear value. The stable tenant and solid yield remain key… Read More

The market sell-off in September and October was especially tough on small cap stocks. They often suffer from a flight to quality as investors seek the safe haven of blue chips when the seas get rough. Since the market’s trough, some oversold small caps began to rebound, but many remain closer to the 52-week low than the 52-week high. Indeed among stocks in the S&P 600 small-cap index, you can find dozens of stocks trading well below the forward broader market multiple of 15.5.  Here’s a list of 10 small-cap stocks (trading in that index) that now trade for less… Read More

The market sell-off in September and October was especially tough on small cap stocks. They often suffer from a flight to quality as investors seek the safe haven of blue chips when the seas get rough. Since the market’s trough, some oversold small caps began to rebound, but many remain closer to the 52-week low than the 52-week high. Indeed among stocks in the S&P 600 small-cap index, you can find dozens of stocks trading well below the forward broader market multiple of 15.5.  Here’s a list of 10 small-cap stocks (trading in that index) that now trade for less than 10 times earnings. The key trait these firms share: All of them are expected to post higher earnings per share, or EPS, in 2015, and yet-higher EPS in 2016. Company 2014 EPS 2015 EPS 2016 EPS 2015 P/E Cash America Int’l (CSH) $4.42 $4.54 $4.78 5.4 AK Steel (AKS) $ (0.21) $1.07 $1.20 6.1 EZCORP (EZPW) $1.33 $1.59 $1.67 6.9 Microsemi (MSCC) $2.78 $3.20 $3.53 8.4 Encore Capital Group (ECPG) $4.46 $5.13 $5.76 8.7 TTM Technologies (TTMI) $0.44 $0.78 $0.98 8.8 Hornbeck Offshore Services (HOS) $2.52 $3.30 $3.57 9.4 General Cable (BGC) $0.73 $1.48 $1.89 9.4 Synaptics (SYNA) $4.85… Read More